Electric Utilities Seek Rate Increases

Friday, August 1, 2008
Topics: Economy, Environment, Other
RSS  Short URL  Share

First Energy wants to increase the rate for electric power 16 percent over three years. American Electric Power wants a 45 percent increase.

The state’s utility watchdog wants regulators to make adjustments to American Electric Power’s plan to raise Ohio rates 45 percent over three years.

Ohio Consumers’ Counsel Janine Migden-Ostrander says that would be one of the largest electric-rate increases her office has seen during its 31 years. She says the proposed rates are more than consumers can handle as they also deal with high costs for gasoline and natural gas.

AEP says it needs to charge more, partly because it’s contending with soaring prices for coal.

On Thursday, AEP was one of two major Ohio power companies to make a request for higher rates. FirstEnergy wants a 16.1 percent increase spread over three years.

The consumers’ counsel says that plan also needs regulatory scrutiny.